Delaware residents are in for some good news as Insurance Commissioner Karen Stewart declares the recovery of more than $1.8 million in premiums. The money was recovered from a number of insurance companies that have been under investigation for the past nine months. These companies had been the subject of consumer complaints, which were funneled to Stewart through the Department of Insurance. The funds will begin being issued to consumers next year.
Fraud and malpractice have been a problematic issue for the state’s insurance industry for some time. In order to combat these trends, the Department of Insurance made use of the State Based System, a product of the National Association of Insurance Commissioners. The State Based System is a web-based tool designed to help insurance regulators keep track of the happenings within any given insurance market in the country. The system allowed investigators in Delaware to coordinate their efforts and recover consumer money.
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The Department of Insurance has yet to release information on the companies affected by the recovery, but is likely to divulge such information in the coming months. Suffice it to say that consumers receiving refunds may have to find new companies to purchase insurance from.
In addition to the millions in premiums recovered from insurers, Stewart notes that more than $5 million was saved statewide thus far this year on workers’ compensation due to safety programs.